Two key investors in the healthcare sector have merged to create the largest investment manager dedicated to their specialist sector, which will see the duo own more than $21 billion in combined assets.
Through the agreement between European healthcare investor Global Healthcare Opportunities (GHO) and Asian asset manager CBC Group, the two companies will join forces to serve companies in the pharmaceutical, life sciences, diagnostics, medtech and healthcare sectors.
The merger will allow both companies to expand their current presence, creating a company with a presence in the key regions of North America, Asia-Pacific (APAC) and Europe, which currently account for around nine-tenths of global healthcare R&D spending.
Working together, the companies will build their employee base of more than 200 operational and investment professionals located across 13 offices. Following the merger, GHO co-founder Mike Mortimer and CBC CEO Fu Wei will take the helm as co-CEOs of the new company, while GHO co-founders Andrea Ponti and Alan MacKay will assume board responsibilities for the group’s finances and governance, respectively.
If the merger closes as expected in 2027, the existing funds and portfolio companies of both entities will continue to operate normally, with no changes to governance, ownership or investment mandates.
According to GHO Capital vice president and co-founder Mireille Gillings, the new company will primarily focus on “high-growth, innovation-driven opportunities,” including artificial intelligence (AI)-based approaches that she says could help deliver “better, faster and more accessible healthcare.”
In a statement to Pharmaceutical technologyGHO noted that success within the global healthcare landscape depends on a company’s ability to “operate seamlessly in transatlantic and transpacific markets.”
“North America, Europe and Asia-Pacific account for 90% of global healthcare R&D spending. Combining with CBC Group was a natural choice; both companies have been pioneers in healthcare investment in their respective regions and we share an entrepreneurial, hands-on approach with strong cultural alignment and mutual trust,” GHO added.
APAC gains ground on the global R&D stage
The merger of GHO and CBC comes as the APAC region gains significant ground in the global R&D market, as China takes the lead in terms of clinical trial initiation in the first quarter of 2026, according to GlobalData analysis.
In recent years, China’s role in the pharmaceutical space has moved away from its traditional roots in manufacturing generic and “me too” drugs, and the country has risen through the ranks to become one of the world’s leading producers of innovative medicines that have first-in-class or best-in-class potential. As a result, many Western companies in the pharmaceutical space are partnering with Chinese biotechs to provide new assets to their projects amid the looming patent cliff facing the sector.